Investors launch second class-action suit against SNC

Investors launch second class-action suit against SNC-Lavalin

Investors launched another class-action lawsuit against SNC-Lavalin Group Inc., which is proposed to include investors dating further back to 2007, according to a statement released Wednesday by Rochon Genova LLP, the law firm representing the group.

The suit, which also names several former executives and board members, alleges that the Montreal-based engineering firm made unlawful payments to the former Libyan Muammar Gaddafi regime. It alleges misrepresentations in SNC-Lavalin’s filings, including that the company should have ensured accurate disclosure and financial reporting.

“When a company repeatedly highlights its strong governance practices to the investing public, revelations of serious misconduct cause damage to the company’s reputation and, in turn, substantial harm to its investors,” said John Archibald, a lawyer with Rochon Genova, in a statement.

But Joel Rochon, lawyer for the plaintiffs, said investors want an external investigation.

“In order for shareholders to get to the bottom of this, there has to be a meaningful investigation that is not conducted by those that are potentially responsible,” Rochon said.

The lawsuit was brought by all investors, except for those residing in Quebec, who purchased securities of SNC-Lavalin between February 1, 2007 and February 28, 2012 or who purchased debentures of the company through the its June 2009 prospectus offering.

The date represents the period immediately following SNC’s appointment of defendant Ben Aissa to executive vice-president of infrastructure projects, according to the statement of claim filed Wednesday.

The lawsuit claims that Mr. Aissa sought to “secure contracts in Libya by strengthening the Company ties to the Gaddafi regime and making undisclosed payments to members, associates, and agents of the regime.”